Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

 

 

 

 

Company Contact

Anil Doradla, Chief Financial Officer

Airgain, Inc.

Investors@airgian.com

 

 

 

Airgain Reports Record Sales and Return to GAAP Profitability for the Third Quarter 2018

 

San Diego, CA, November 1, 2018 – Airgain, Inc. (NASDAQ: AIRG), a leading provider of advanced antenna technologies used to enable high performance wireless networking across a broad range of devices and markets, including connected home, enterprise, automotive and Internet of Things (IoT), today announced record sales for the third quarter 2018, GAAP diluted EPS of $0.04 and a return to GAAP earnings profitability.  

 

“We are very pleased with our third quarter results as we continue to execute favorably on our stated goals, both on the sales growth and sustainable profitability front. On the sales growth front, we delivered record sales for the third consecutive quarter and reported 27% year-over-year growth. The strength in our third quarter sales reflect robust demand across our service provider customer base for next-generation broadband technologies. We expect to build up on our recent design win momentum within the Connected Home, Enterprise, IoT, and Automotive markets  as these markets support higher bandwidth speeds and more complex antenna designs. On the profitability front, we reported third quarter GAAP and non-GAAP diluted earnings per share of $0.04 and $0.09, respectively, ahead of our prior expectations.  We are pleased with our renewed focus on execution combined with our recent decisions on the operating front that have resulted in our return to profitability, both on a GAAP and non-GAAP basis during the quarter,” said Airgain’s Interim Chief Executive Officer Jim Sims.

 

Third Quarter 2018 Financial Highlights

 

Sales of $15.8 million

 

Gross margin of 43%

 

GAAP earnings per diluted share of $0.04

 

Non-GAAP earnings per diluted share of $0.09

 

Adjusted EBITDA of $1.0 million

 

Third Quarter 2018 Financial Results

Sales increased 27% to $15.8 million compared to $12.4 million in the same year-ago period.  The increase in sales was primarily driven by a ramp in existing programs as well as contributions from new designs.

 

Gross profit increased 14% to $6.9 million from $6.0 million in Q3 of last year. Gross margin as a percentage of sales was 43% in the third quarter of 2018, which declined from 48% in the same year-ago period, largely due to a combination of product mix along with ramp of new programs.  

 

1


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

Total operating expenses for the third quarter of 2018 increased 13% to $6.6 million from $5.8 million in Q3 of last year. The increase was primarily due to an increase in personnel expenses to support the Company’s sales, marketing, and R&D initiatives.  

 

Net income totaled $0.4 million or $0.04 per diluted share (based on 10.1 million shares), compared to net income of $0.2 million or $0.02 per diluted share (based on 10.2 million shares) in the same year-ago period.  

 

Non-GAAP net income totaled $0.9 million or $0.09 per diluted share (based on 10.1 million shares), compared to non-GAAP net income of $0.6 million or $0.05 per diluted share (based on 10.2 million shares) in the same year-ago period (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of this non-GAAP measure).

 

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, acquisition expenses, other income, non-recurring items and share-based compensation) increased to net income of $1.0 million from net income of $0.7 million in the same year-ago period (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of this non-GAAP measure).

 

Total shares repurchased for the third quarter 2018 were 42,995 shares at an average price of $11.95, for a total amount of $0.5 million.  

 

Nine Months 2018 Financial Highlights

 

Sales of $44.1 million

 

Gross margin of 45%

 

GAAP earnings per diluted share of $(0.41)

 

Non-GAAP earnings per diluted share of $0.05

 

Adjusted EBITDA of $0.9 million

 

Nine Months 2018 Financial Results

Sales increased 20% to $44.1 million compared to $36.7 million in the same year-ago period.  The increase in sales was primarily driven by a ramp in existing programs as well as contributions from new designs.

 

Gross profit grew 13% to $19.7 million from $17.4 million for the first nine months of last year. Gross margin as a percentage of sales was 45% in the first nine months of 2018, which was slightly below gross margins of 47% in the same year-ago period.  

 

Total operating expenses for the first nine months of 2018 grew 43% to $24.2 million from $16.9 million in the first nine months of last year. The increase was primarily due to $2.0 million in non-recurring items associated with the realignment of sales and marketing initiatives combined with executive severance and $1.2 million in additional stock compensation expense due to the acceleration of options for former executives.  The remaining increase is due to an increase in personnel expenses to support the Company’s sales, marketing, and R&D initiatives.  

 

Net loss totaled $3.9 million or $(0.41) per diluted share (based on 9.5 million shares), compared to net income of $0.5 million or $0.05 per diluted share (based on 10.2 million shares) in the same year-ago period.  During the first nine months of 2018, the impact of non-recurring items to GAAP earnings per diluted share was ($0.21) which included realignment of sales and marketing initiatives combined with executive severance.    

2


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

 

Non-GAAP net income totaled $0.5 million or $0.05 per diluted share (based on 10.0 million shares), compared to non-GAAP net income of $2.2 million or $0.22 per diluted share (based on 10.2 million shares) in the same year-ago period (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of this non-GAAP measure).

 

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, acquisition expenses, other income, non-recurring items and share-based compensation) decreased to $0.9 million from $2.6 million in the same year-ago period (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of this non-GAAP measure).

 

Total shares repurchased for the first nine months of 2018 were 193,523 shares at an average price of $9.49, for a total amount of $1.8 million.

 

Financial Outlook

The Company expects sales in the fourth quarter 2018 to be in the range of $16.4 million to $16.5 million.  For the fourth quarter 2018, the Company expects GAAP diluted EPS in the range of $0.02 to $0.03 and non-GAAP diluted EPS to be in the range of $0.07 to $0.08.  

 

The following table summarizes the reconciliation between the projected GAAP EPS and non-GAAP EPS for the fourth quarter 2018:

 

 

 

Low (1)

 

 

High (1)

 

Reconciliation of projected GAAP to projected non-GAAP EPS

 

 

 

 

 

 

 

 

Projected GAAP earnings per diluted share

 

$

0.02

 

 

$

0.03

 

Stock-based compensation expense

 

 

0.04

 

 

 

0.04

 

Amortization

 

 

0.02

 

 

 

0.02

 

Other income

 

 

(0.01

)

 

 

(0.01

)

Projected Non-GAAP earnings per diluted share

 

$

0.07

 

 

$

0.08

 

 

 

(1)

Amounts are based off of 10.0 million diluted shares outstanding.

For fiscal year 2018, the Company reaffirms its sales outlook of at least 20% growth over fiscal year 2017.

 

Conference Call

Airgain management will hold a conference call today Thursday, November 1, 2018 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss financial results for the third quarter ended September 30, 2018, and to provide an update on business conditions.

 

Airgain management will host the presentation, followed by a question and answer period.

 

Date: Thursday, November 1, 2018

Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)

U.S. dial-in: 1-877-451-6152

International dial-in: 1-201-389-0879

 

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact the company at 1-760-579-0200.

 

3


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

The conference call will be broadcast live and available for replay in the investor relations section of the company's website.

 

A replay of the call will be available after 7:30 p.m. Eastern Time on the same day

through December 9, 2018.

 

U.S. replay dial-in: 1-844-512-2921

International replay dial-in: 1-412-317-6671

Replay ID: 13683831

 

About Airgain, Inc.

Airgain is a leading provider of advanced antenna technologies used to enable high performance wireless networking across a broad range of devices and markets, including connected home, enterprise, automotive and Internet of Things (IoT).  Combining design-led thinking with testing and development, Airgain works in partnership with the entire ecosystem, including carriers, chipset suppliers, OEMs, and ODMs.  Airgain’s antennas are deployed in carrier, fleet, enterprise, residential, private, government, and public safety wireless networks and systems, including set-top boxes, access points, routers, modems, gateways, media adapters, portables, digital televisions, sensors, fleet, and asset tracking devices.  Airgain is headquartered in San Diego, California, and maintains design and test centers in the U.S., U.K., and China.  For more information, visit airgain.com, or follow us on LinkedIn and Twitter.

 

Airgain and the Airgain logo are registered trademarks of Airgain, Inc.  

 

Forward-Looking Statements

Airgain cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. These forward-looking statements include statements regarding the buildup on our recent design win momentum, within the Connected Home, Enterprise, IoT and Automotive markets and the robust demand across our service provider customer base for next-generation broadband technologies, our continued focus on growth and sustainable profitability, both on a GAAP and non-GAAP basis, and our fourth quarter and 2018 financial outlook.  The inclusion of forward-looking statements should not be regarded as a representation by Airgain that any of our plans will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including, without limitation: the market for our antenna products is developing and may not develop as we expect; our operating results may fluctuate significantly, including based on seasonal factors, which makes future operating results difficult to predict and could cause our operating results to fall below expectations or guidance; risks and uncertainties related to management and key personnel changes; our products are subject to intense competition, including competition from the customers to whom we sell, and competitive pressures from existing and new companies may harm our business, sales, growth rates and market share; our future success depends on our ability to develop and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers; our ability to identify and consummate strategic acquisitions and partnerships, and risks associated with completed acquisitions and partnerships adversely affecting our operating results and financial condition; we sell to customers who are extremely price conscious, and a few customers represent a significant portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a few contract manufacturers to produce and ship all of our products, a single or limited number of suppliers for some components of our products and channel partners to sell and support our products, and the

4


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

failure to manage our relationships with these parties successfully could adversely affect our ability to market and sell our products; if we cannot protect our intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; and other risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

 

Note Regarding Use of Non-GAAP Financial Measures

To supplement our condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation, amortization (Adjusted EBITDA), non-GAAP net income attributable to common stockholders (non-GAAP Net income), and non-GAAP earnings per diluted share (non-GAAP EPS). We believe these financial measures provide useful information to investors with which to analyze our operating trends and performance.

 

In computing Adjusted EBITDA, non-GAAP Net income, and non-GAAP EPS, we also exclude stock-based compensation expense, which represents non-cash charges for the fair value of stock options and other non-cash awards granted to employees, acquisition related expenses, which include due diligence, legal, integration, and regulatory expenses, non-recurring expenses, which include realignment of sales and marketing initiatives,  severance payments and implementation costs, other income, which includes interest income and gain on deferred purchase price liability offset by interest expense, depreciation, amortization and provision for income taxes. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expense allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time. In addition, our recent acquisition related activities resulted in operating expenses that would not have otherwise been incurred. Management considers these types of expenses and adjustments, to a great extent, to be unpredictable and dependent on a significant number of factors that are outside of our control and are not necessarily reflective of operational performance during a period. Furthermore, we believe the consideration of measures that exclude such acquisition related expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

 

Our Adjusted EBITDA, non-GAAP Net income, and non-GAAP EPS measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP Net income, and non-GAAP EPS are not measurements of financial performance under GAAP, and should not be considered as an alternative to operating or net income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP measures to be a substitute for, or superior to, the information provided

5


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

by GAAP financial results. A reconciliation of specific adjustments to GAAP results is provided in the last two tables at the end of this release.

 

 

 

 

 

 

6


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

Airgain, Inc.

 

Unaudited Condensed Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

13,064,656

 

 

$

15,026,068

 

Short term investments

 

 

 

18,765,236

 

 

 

21,287,064

 

Trade accounts receivable, net

 

 

 

7,388,688

 

 

 

8,418,132

 

Inventory

 

 

 

1,217,831

 

 

 

741,557

 

Prepaid expenses and other current assets

 

 

 

876,183

 

 

 

609,786

 

Total current assets

 

 

 

41,312,594

 

 

 

46,082,607

 

Property and equipment, net

 

 

 

1,366,309

 

 

 

1,036,860

 

Goodwill

 

 

 

3,700,447

 

 

 

3,700,447

 

Customer relationships, net

 

 

 

3,713,668

 

 

 

4,075,918

 

Intangible assets, net

 

 

 

906,545

 

 

 

1,052,333

 

Other assets

 

 

 

339,000

 

 

 

349,743

 

Total assets

 

 

$

51,338,563

 

 

$

56,297,908

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

3,879,235

 

 

$

3,969,083

 

Accrued bonus

 

 

 

2,378,805

 

 

 

2,224,517

 

Accrued liabilities

 

 

 

696,482

 

 

 

1,121,833

 

Deferred purchase price

 

 

 

 

 

 

1,000,000

 

Notes payable

 

 

 

333,333

 

 

 

1,333,333

 

Current portion of deferred rent obligation under operating lease

 

 

 

81,332

 

 

 

81,332

 

Total current liabilities

 

 

 

7,369,187

 

 

 

9,730,098

 

Deferred tax liability

 

 

 

29,887

 

 

 

7,971

 

Deferred rent obligation under operating lease

 

 

 

247,157

 

 

 

334,860

 

Total liabilities

 

 

 

7,646,231

 

 

 

10,072,929

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

Common shares, par value $0.0001, 200,000,000 shares authorized at September 30, 2018 and December 31, 2017;  9,914,711 and 9,616,992 shares issued at September 30, 2018 and December 31, 2017, respectively; 9,586,188 and 9,481,992 shares outstanding at September 30, 2018 and December 31, 2017, respectively

 

 

 

991

 

 

 

961

 

Additional paid in capital

 

 

 

93,060,369

 

 

 

89,907,766

 

Treasury stock, at cost: 328,523 and 135,000 shares at September 30, 2018 and December 31, 2017, respectively

 

 

 

(3,093,974

)

 

 

(1,257,100

)

Accumulated other comprehensive loss, net deferred taxes

 

 

 

(6,434

)

 

 

(16,907

)

Accumulated deficit

 

 

 

(46,268,620

)

 

 

(42,409,741

)

Total stockholders’ equity

 

 

 

43,692,332

 

 

 

46,224,979

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

 

$

51,338,563

 

 

$

56,297,908

 

 

7


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

Airgain, Inc.

Unaudited Condensed Statements of Operations

 

Airgain, Inc.

Unaudited Condensed Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Sales

 

$

15,786,913

 

 

$

12,448,436

 

 

$

44,063,692

 

 

$

36,713,996

 

Cost of goods sold

 

 

8,921,571

 

 

 

6,444,544

 

 

 

24,402,658

 

 

 

19,300,120

 

Gross profit

 

 

6,865,342

 

 

 

6,003,892

 

 

 

19,661,034

 

 

 

17,413,876

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,474,653

 

 

 

2,094,774

 

 

 

7,162,092

 

 

 

5,510,861

 

Sales and marketing

 

 

2,161,143

 

 

 

1,809,037

 

 

 

9,140,356

 

 

 

5,229,188

 

General and administrative

 

 

1,922,326

 

 

 

1,899,449

 

 

 

7,864,320

 

 

 

6,174,869

 

Total operating expenses

 

 

6,558,122

 

 

 

5,803,260

 

 

 

24,166,768

 

 

 

16,914,918

 

Income (loss) from operations

 

 

307,220

 

 

 

200,632

 

 

 

(4,505,734

)

 

 

498,958

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(158,790

)

 

 

(98,689

)

 

 

(398,003

)

 

 

(189,855

)

Gain on deferred purchase price liability

 

 

 

 

 

 

 

 

(388,733

)

 

 

 

Interest expense

 

 

5,756

 

 

 

22,762

 

 

 

29,506

 

 

 

80,239

 

Total other income

 

 

(153,034

)

 

 

(75,927

)

 

 

(757,230

)

 

 

(109,616

)

Income (loss) before income taxes

 

 

460,254

 

 

 

276,559

 

 

 

(3,748,504

)

 

 

608,574

 

Provision for income taxes

 

 

22,995

 

 

 

42,206

 

 

 

110,375

 

 

 

59,251

 

Net income (loss)

 

$

437,259

 

 

$

234,353

 

 

$

(3,858,879

)

 

$

549,323

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

0.02

 

 

$

(0.41

)

 

$

0.06

 

Diluted

 

$

0.04

 

 

$

0.02

 

 

$

(0.41

)

 

$

0.05

 

Weighted average shares used in calculating income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

9,566,118

 

 

 

9,545,235

 

 

 

9,495,278

 

 

 

9,475,708

 

Diluted

 

 

10,092,501

 

 

 

10,169,559

 

 

 

9,495,278

 

 

 

10,238,987

 

 

 

 

8


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

Airgain, Inc.

 

Unaudited Condensed Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(3,858,879

)

 

$

549,323

 

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

422,549

 

 

 

336,817

 

Amortization

 

 

508,038

 

 

 

396,206

 

Amortization of premium (discount) on investments, net

 

 

(94,317

)

 

 

(23,683

)

Stock-based compensation

 

 

2,536,132

 

 

 

463,856

 

Deferred tax liability

 

 

21,916

 

 

 

67,709

 

Gain on deferred purchase price liability

 

 

(388,733

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

667,375

 

 

 

(1,969,507

)

Inventory

 

 

(476,274

)

 

 

(30,265

)

Prepaid expenses and other assets

 

 

(255,654

)

 

 

(501,506

)

Accounts payable

 

 

35,954

 

 

 

(123,112

)

Accrued bonus

 

 

154,288

 

 

 

(83,140

)

Accrued liabilities

 

 

(425,351

)

 

 

16,143

 

Deferred obligation under operating lease

 

 

(87,703

)

 

 

(92,216

)

Net cash used in operating activities

 

 

(1,240,659

)

 

 

(993,375

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for acquisition

 

 

 

 

 

(6,348,730

)

Purchases of available-for-sale securities

 

 

(24,328,831

)

 

 

(18,441,161

)

Maturities of available-for-sale securities

 

 

26,955,449

 

 

 

 

Purchases of property and equipment

 

 

(751,998

)

 

 

(195,922

)

Net cash provided by (used in) investing activities

 

 

1,874,620

 

 

 

(24,985,813

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayment of notes payable

 

 

(1,000,000

)

 

 

(1,055,230

)

Payments on acquisition related deferred purchase price

 

 

(375,000

)

 

 

 

Reversal of costs related to initial public offering

 

 

 

 

 

781

 

Common stock repurchases

 

 

(1,836,874

)

 

 

(468,823

)

Proceeds from exercise of stock options

 

 

616,501

 

 

 

506,704

 

Net cash used in financing activities

 

 

(2,595,373

)

 

 

(1,016,568

)

Net decrease in cash and cash equivalents

 

 

(1,961,412

)

 

 

(26,995,756

)

Cash and cash equivalents, beginning of period

 

 

15,026,068

 

 

 

45,161,403

 

Cash and cash equivalents, end of period

 

$

13,064,656

 

 

$

18,165,647

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Interest paid

 

$

33,812

 

 

$

85,085

 

Taxes paid

 

$

26,026

 

 

$

114,639

 

 

 

 

9


Exhibit 99.1

 

3611 Valley Centre Drive, Suite 150

San Diego, CA 92130 USA

+1 760 579 0200

 

 

 

Airgain, Inc.

 

Unaudited Reconciliation of GAAP to non-GAAP Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation of GAAP to non-GAAP Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

437,259

 

 

$

234,353

 

 

$

(3,858,879

)

 

$

549,323

 

Stock-based compensation expense

 

 

408,274

 

 

 

213,968

 

 

 

2,536,133

 

 

 

463,856

 

Amortization

 

 

169,346

 

 

 

74,402

 

 

 

508,038

 

 

 

396,206

 

Acquisition expenses

 

 

 

 

 

65,364

 

 

 

 

 

 

860,833

 

Software implementation costs

 

 

3,166

 

 

 

 

 

 

 

3,166

 

 

 

 

 

Non-recurring items (1)

 

 

 

 

 

 

 

 

1,956,489

 

 

 

 

Other income

 

 

(153,034

)

 

 

(75,927

)

 

 

(757,230

)

 

 

(109,616

)

Provision for income taxes

 

 

22,995

 

 

 

42,206

 

 

 

110,375

 

 

 

59,251

 

Non-GAAP net income

 

$

888,006

 

 

$

554,366

 

 

$

498,092

 

 

$

2,219,853

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

 

$

0.06

 

 

$

0.05

 

 

$

0.23

 

Diluted

 

$

0.09

 

 

$

0.05

 

 

$

0.05

 

 

$

0.22

 

Weighted average shares used in calculating non-GAAP income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

9,566,118

 

 

 

9,545,235

 

 

 

9,495,278

 

 

 

9,475,708

 

Diluted

 

 

10,092,501

 

 

 

10,169,559

 

 

 

9,965,632

 

 

 

10,238,987

 

 

 

 

 

Airgain, Inc.

 

Unaudited Reconciliation of Net Income to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

437,259

 

 

$

234,353

 

 

$

(3,858,879

)

 

$

549,323

 

Stock-based compensation expense

 

 

408,274

 

 

 

213,968

 

 

 

2,536,133

 

 

 

463,856

 

Depreciation and amortization

 

 

325,439

 

 

 

188,760

 

 

 

930,587

 

 

 

733,023

 

Acquisition expenses

 

 

 

 

 

65,364

 

 

 

 

 

 

860,833

 

Software implementation costs

 

 

3,166

 

 

 

 

 

 

 

3,166

 

 

 

 

 

Non-recurring items (1)

 

 

 

 

 

 

 

 

1,956,489

 

 

 

 

 

Other income

 

 

(153,034

)

 

 

(75,927

)

 

 

(757,230

)

 

 

(109,616

)

Provision benefit for income taxes

 

 

22,995

 

 

 

42,206

 

 

 

110,375

 

 

 

59,251

 

Adjusted EBITDA

 

$

1,044,099

 

 

$

668,724

 

 

$

920,641

 

 

$

2,556,670

 

 

(1)

Non-recurring items include $2.0 million in sales and marketing initiative realignment and executive severance for the nine months ended September 30, 2018.

10